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国外大学assignment格式:跨国公司对发展中国家的影响

时间:2017-06-08 10:35来源:www.ukassignment.org 作者:cinq 点击:
本文是国外大学assignment范文,是一篇符合国外大学assignment格式要求的作业,主要内容是分析跨国公司对发展中国家的影响。
长期以来,公民一直乐于追随政府和跨国公司领导的位置。利润动机已免于攻击。“多国”这个词是“多”和“民族”的结合词,当它是指众多国家。跨国公司是指至少有一个国家的设施和其他有价值的资产,而不是其母国。它是一个组织或公司,生产和销售服务和货物在许多国家。一些跨国公司的预算高于一些小规模国家的GDP。今天跨国公司的一些主要例子是诺基亚,麦当劳,微软,外显移动和BP。
最初的跨国公司之一是东印度公司(1600 - 1874),这是一个很好的例子,这种风险投资的好处和缺点。一方面,存在一个动态的盈利实体,另存在一个公司在外国的土地上工作,在英国,很小的控制、操作和运行自己的私人军队,利用军事力量并最终接管印度行政功能。
 
Introduction 简介
"For too long, citizens have been content to follow where government and multinational corporations lead. The profit motive has become immune to attack. It is understood that as long as something is profitable for shareholders, nothing else matters enough" Occupy Protester CTV Op-ED - RT News.
The word "Multinational" is a combined word of "Multi" and "National", which when combined refers to numerous countries. A Multinational Corporation is a corporation that has its facilities and other valuable assets in at least one country, which is other than its parent country. It is a organization or company that both produces and sells services and goods in a multitude of countries. Some MNCs have a budget which is greater than some small sized countries GDP's. [1]
 
Some of the major examples of MNCs today are Nokia, McDonalds, Microsoft, Exon Mobile and BP.
 
One of the initial MNCs was the East India Company (1600 - 1874), which is an excellent examples of both the benefits and drawbacks of such ventures. On one hand there existed a dynamic profit making entity, on the other existed a company operating on foreign soil, under very little control of the British government, having, operating and running their own private armies, utilizing military power and ultimately taking over administrative functions of India.
 
MNCs have come a long way since then and have seen a sharp increase in the past few decades. The numbers of active MNCs went from being roughly 7,000 in the 1970's to 78,000 in 2006, being responsible for over half the global industrial output. [2]
 
Multinational corporations usually bring with them foreign direct investment, which is direct investment in a country by the company for expanding their existing business base or for buying of raw goods and inputs from them.
 
Multinational corporations were the vital factor in globalization, where local and national governments competed against each other in order to incentives and attract more MNCs and ultimately, investment in their countries. An example of such incentive is the Free Trade Zones, where goods may be manufactured, handled, landed or even exported without any intervention of the local custom authorities. Most of these free trade zones exist in developing countries such as Pakistan, Mexico, Sri Lanka, Madagascar, Brazil and India, as they are eager to attract more foreign investors. [3]
 
Definition of MNC:
Economists are not in unanimous agreement as to how best define trans or multinational corporations. Most MNCs are multidimensional and can be viewed from a multitude of perspectives. These include: Ownership, strategy, management and structural.
 
According to Franklin Root (1994), that though some argue that ownership is the key criterion amongst all of the above, a firm truly becomes multinational given its parent company or headquarter is run/owned by nationals of varying countries. Examples that fit this category are Unilever and Shell, which are owned and run by Dutch and British interests.
 
However via this test, very few companies would fall under the banner of being a true Multinational company, rather most are uninational.
 
According to Howard Perlmutter (1969) [4] multinational companies might pursue either world oriented, host country oriented or home country oriented policies. He uses these terms as geocentric, polycentric and ethnocentric, however the last is misleading since it focuses upon ethnicity and race, but most countries are themselves populated by a variety and mix of races, whereas Polycentric means the MNCs operations only take place in a couple of foreign countries.
 
Franklin Root (1994) [5] states that MNC is a parent company which:
 
Shows implementation of strategies of finance, marketing, staffing and production in its business.
Has direct and binding control over its affiliates and their policies.
Uses those affiliates to conduct foreign production in several countries.
Advantages of MNCs
Increase Investment:
The primary argument in favor of MNCs is that they enable investment into less developed countries which is essential for their growth. According to this argument, there exists a huge gap between the optimal investment levels and the levels of savings in a country. This gap can be minimized via foreign direct investments, i.e. transfer of resources from a foreign source in the form of economic injections.
 
Technological Transfers:
Another important aspect is the issue of technological transfer. Any MNC operating in a certain country needs to have an agreement with the host country about its operating guidelines. This can be both beneficial or harmful, depending upon the negotiations. If done right, the MNC would agree to a transfer of technology which would turn out to be very beneficial for the host country, since technological advancements require huge research and development funds that the developing countries just do not have. So it makes sense for them to open up their markets in exchange for a technology that could make them self reliant and self sustaining.
 
Transfer of skills:
Like a transfer of technology, MNCs also bring with them a wealth of knowledge and experience. Their staff is amongst the best in the world and employees from the less developed countries learn plethora of skills from them, enabling them to train others and have a trickledown effect. Foreign firms pay for and provide world class training to its employees and stimulates intellectual as well as capital growth.
 
Trickle down effects:
MNCs, via their broad investments enable linkages backward, forward and horizontally. Not only does the MNC provide a FDI, but it also benefits companies that it collaborates with, such as industries that produce complementary goods. The service industry also benefits via the increase in investment. It creates additional demand and improves infrastructure abilities.
 
Increase in Tax revenue:
An increase in tax revenue is also an added benefit, since the host country gets to tax them and includes it in their public revenue. This can be used to finance projects that lead to development of infrastructure, causing economic development.
 
Reduces gap between capital and labor:
Less developed countries are also highly labor sensitive. As in the ratio of capital to labor is very low. MNCs employee vast numbers of the local population reducing this gap, creating jobs and employment and revenue means for the populace. There are two effects, direct and indirect. Job creation is direct, while the increased stimulus in demand and supply is the indirect employment effect.
 
Encourages competition:
This investment encourages entrepreneurship and breeds a culture of competition, increasing competitiveness amongst local companies, causing them to improve their own goods and services by increasing their efficiency and ultimately quality in order to better compete.
 
Improves Balance of Payments:
An added benefit of foreign direct investment is that it helps the Balance of Payments of both, the capital and current accounts, of the host country.
 
Criticism of MNCs:
"Multinational corporations do control. They control the politicians. They control the media. They control the pattern of consumption, entertainment, thinking. They're destroying the planet and laying the foundation for violent outbursts and racial division." Jerry Brown
There are two sides to every coin, and this is no different. Critics of MNCs state that the cons far outweigh the pros that MNC involvement brings to host countries. The primary concern for them is the high levels of unmonitored influence these companies have on host countries.
 
Colonialism:
MNC's are seen as a offshoot of western colonialism, albeit in a more subtle manner. Far from improving the balance of payments on both the current and capital accounts, critics argue that MNC's worsen it. This they argue happens when the profits are repatriated to their own countries. Though the local governments may come to an agreement that a certain portion of their inputs be bought in the local market, this however may come at a cost with negative impacts upon the less developed countries current accounts.
 


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